Advanced_Funding_Program_Cheat_Sheet

Advanced Funding Program Cheat Sheet

The best client for the finance suite is a business owner who can funding. To qualify for initial cash

funding a business owner will need to have one of the 3 Cs of lending which are either Collateral, Cash flow,

or Credit. If your client has one of these they might qualify for immediate funding. Below are more details on

funding programs, terms, and qualification requirements. More funding program details are also available in

the training document Business Funding Suite Overview.

Unsecured Credit Lines/ Cards

Business Revenue Lending

Collateral Required

Collateral Required

Good personal or business credit

Consistent revenue verifiable on bank statements

$10,000-$150,000

$5,000-$500,000

Revolving credit cards

3-18 months

5-29% APR, 9% funding fee paid after approval

10-45%

Excellent personal credit required, no late payments or derogatory credit within the last 12 months can be on personal credit now, no open collections or bankruptcies, less than 2 inquiries in the last 6 months on consumer credit report

Approval amounts are typically 5 times the amount of their existing highest limit credit card now, must have open credit cards with balances below 30% of their card limits

Application, credit monitoring login credentials

Loan Amounts

Loan Amounts

Term

Term

Rates

Rates

Credit Requirements

Details:

Deal Submission requirements:

500 credit score or higher, no bankruptcies

No credit score requirements to qualify

650 FICO scores or higher

Business must earn $10,000 in monthly revenue, must be in business for 12 months or more (6 months possible with compensating factors), business must do over 10 transactions each month, financial services industries are prohibited, damaged credit is acceptable

Receivables must come from another business or government agency not an individual, business must be open for at least 1 year to qualify, medical receivables can qualify along with construction and conventional receivables

Application, 6 months business bank and merchant statements

Application, breakdown of existing receivables, sample invoice

Credit Requirements

Credit Requirements

Credit Requirements

Details:

Details:



Account Receivable Financing

Private Equity

Collateral Required

Collateral Required

Account receivables

20% of loan amount required as collateral

$5,000-$20 million

$250,000-$100 million

Up to 80% of receivables can be advanced within 24 hours, 20% minus lender’s fee is released once actual invoice is paid

Revolving lines of credit and loans available

1.25-3% discount. 4% fee is common

8-18%

Loan Amounts

Loan Amounts

Term

Term

Rates

Rates

500 credit score or higher

580 or higher FICO score

Business must bring in $5,000 or more monthly in credit card sales, typical approval amounts equal to one month’s credit card processing volume

Equipment financing, leasing, heavy equipment financing, and equipment sale-leaseback are available

Loans and credit lines available

Application, 3-6 months bank and merchant statements

Application, details on equipment being financed

Application, 2 years business tax returns, personal credit report

Credit Requirements

Credit Requirements

Details:

Details:

Details:




Merchant Advance

Equipment Lending/ Leaseback

Collateral Required

Collateral Required

Credit card sales

Existing equipment, or new equipment business wants to purchase

$1,000-$500,000

$10,000-$2 million

3-18 month term, revolving line-of-credit also available

12-48 months

10-45%

5%-21%

Loan Amounts

Loan Amounts

Term

Term

Rates

Rates

500 FICO score

630 FICO score

No penalties for roll-over

Fixed payment paid twice monthly

Application, copy of 401k statement

Application, 3 months bank statements, 2 years financial statements, 2 years business tax returns, most recent personal tax return

Credit Requirements

Credit Requirements

Details:

Details:



401k Financing

Alternative SBA Financing

Securities Financing

Qualified Requirements

Collateral Required

Collateral Required

401k or IRA

None required

Stocks, bonds

Up to 100% of what is in their 401k

$50,000-$500,000

up to 90% of value of stock or bonds

5 year loan

2-4 years

500 FICO score

Prime +2, usually 4-6%

8-25%

2-5%

Loan Amounts

Loan Amounts

Loan Amounts

Term

Term

Term

Rates

Rates

Rates

520 FICO score

Most stocks and securities accepted

Application, copy of securities statement

Credit Requirements

Details:


Inventory Financing

Collateral Required Inventory

$150,000-$500,000

Revolving line-of-credit

2-5%

Loan Amounts

Term

Rates

520 credit score or higher

Must have $300,000 or more in inventory to qualify, loan amounts as high as 50% of inventory

Application, list of inventory

Credit Requirements

Details:


No credit score requirements to qualify

A business can obtain a letter-of-credit for up to 95% of the order, cannot be for unfinished goods

Application, copy of purchase order

Credit Requirements

Details:


Purchase Order Financing

Collateral Required Purchase Orders

$5,000-$25,000

Up to 95% of purchase order can be advanced, 5% less fee is released once actual invoice is paid

1-4%

Loan Amounts

Term

Rates

720 FICO score or higher, no BKs or tax liens

Business must have revenue more than $350,000 to qualify, credit lines typically do not exceed 10% of annual sales

Application, 2 years business tax returns, resume, business plan, current P&L, 4 months business bank statements

Credit Requirements

Details:


Enterprise Unsecured Credit Cards and Lines

Collateral Required Good personal credit

$50,000-$250,000


5-30%

Loan Amounts

Term

Rates

620 FICO scores or higher, no BK in the last 4 years

For profit companies only, positive trends in sales growth,, financials required for qualification, SBA 504 and 7a programs available, can be used for working capital or real estate purchase

Application, 2 years business tax returns, resume, business plan, current P&L, 4 months business bank statements

Credit Requirements

Details:


Enterprise SBA Loans

Collateral Required Collateral must be 50% of loan amount

$200,000-$12 million

10-25 years

2-2.75% + prime rate, 3-5 lender points

Loan Amounts

Term

Rates

660 FICO score or higher

Can get 100% of funds to purchase and rehab property

Application, summary or work needed done, home inspection, appraisal, two years of business tax returns, contract, 3 months bank statements, 3 months pay stubs

Credit Requirements

Details:


Rehab Financing

Collateral Required Residential investment property

$25,000-$250,000

Loan-to-value up to 65% of after-repaired value

8%-18%

Loan Amounts

Term

Rates

650 FICO score

Conventional, SBA 504 available,

Application, 2 years business tax returns , appraisal

Credit Requirements

Details:


Commercial Real Estate

Collateral Required Commercial real estate

$75,000- $20,000,000

Up to 55% loan-to-value for refinances, up to 65% loan-to-value for purchases, 20-30 year loans

4-8%

Loan Amounts

Term

Rates

Sign Financing

Collateral Required Commercial signage

$1,500-$50,000

3-12 months

Loan Amounts

Term


All types of signs qualify, new businesses can qualify, security deposit equal to 2 months of payments typically required

Application, sign invoice

Credit Requirements

Details:


Wrap Financing

Collateral Required Vehicle wrap

$1,500-$15,000

3 to 12 months

Loan Amounts

Term

600+ with Strong references

Loans under 250k don’t require financials, financing above 250k does require business financials

Credit Requirements

Details:

Floor plan Financing

Collateral Required Floor plan of vehicles

$25,000-$250,000


9.5%

Loan Amounts

Term

Rates


Any business can qualify, security deposit equal to 2 months of payments typically required, automobile wraps only

Application, graphic wrap invoice

Credit Requirements

Details:


8%-12%Rates

Application, 2 years business tax returns, current and prior income statement and balance sheet, current personal financial statement


8%-12%Rates

520 FICO or higher

Only available for insurance agents

Credit Requirements

Details:

Book of Business Financing

Collateral Required Book of Business

borrow 2-3 times annual renewal commissions

3-10 year loan

4-9% + prime rate

Loan Amounts

Term

Rates

Application, summary of existing renewables Deal Submission requirements:

Documents

Advanced_Funding_Program_Cheat_Sheet